SMSFA continues push on super caps
Amid speculation that super will be targeted in next week's federal budget, the SMSF Association (SMSFA) has stood by new research which points to the “critical” nature of adequate and flexible contribution caps.
The study, commissioned by SMSFA and Rice Warner in conjunction with BGL Corporate Solutions, shows the importance of allowing members to make “catch-up payments” later in their working lives.
“This is an important piece of research that demonstrates the importance of concessional caps to allow people to top up their payments later in their working lives to ensure they are self-sufficient in retirement,” SMSFA chief executive Andrea Slattery said.
“The research clearly shows there is strong increase in SMSF member contributions to superannuation after entering their 50s and then through to their early 70s.
“Without sufficient contribution caps to allow people to make the necessary contributions to their superannuation, these catch-up contributions will not be made, reducing people’s ability to achieve adequate superannuation savings to rely upon on retirement.
“Any move by the government to reduce concessional contribution caps will undermine people’s ability to build adequate savings to use in retirement, with the inevitable effect of increasing their reliance on the age pension.
“The research shows that females start making catch-up contributions earlier than males, and this should be catered for by adequate and flexible contribution caps.”